In this episode of Medicubes, join Ben Ryan and Kelly Chard as they discuss the intricacies of payroll tax for GP clinics.
They cover how payroll tax affects medical practices in Australia and the recent crackdown by revenue offices on non-compliant practices. Hear real-world cases highlighting the importance of properly classifying doctors to not run into payroll tax pain later down the line.
- 02:15 - Payroll tax is a state-based tax administered by each state's revenue office, not the ATO (Australian Taxation Office)
- 03:45 - Revenue offices are actively cracking down on medical practices that have been non-compliant with payroll tax regulations.
- 06:20 - Recent cases involving Optical Superstore and Thomas and Naaz have brought attention to the issue of properly classifying doctors and patients under the Payroll Tax Act.
- 10:30 - Medical practices need to consider payroll tax when dealing with doctors and patients and seek advice from experienced professionals.
- 14:10 - It is essential for medical practices to have conversations with knowledgeable professionals who specialise in both accounting and legal aspects of the medical industry.
- 17:45 - Updating bank accounts without considering the wider plan will not fix any existing payroll tax issues.
- 21:00 - Collaborating with legal advisors and experts is crucial to ensure operational changes align with legal advice.
- 24:15 - Understanding the business structure, evaluating day-to-day operations, and seeking professional advice are the first steps in managing payroll tax risks.
Remember this episode is not professional advice in any way. Please seek your own accounting and legal advice taking into account your own unique circumstances.